Strategic OPD-MSP Partnerships for Growth

The partnership between Office Products Dealers (OPDs) and Managed Service Providers (MSPs) is not about transforming OPDs into MSPs—it is about leveraging the strengths of each to create a sustainable, mutually beneficial business model. OPDs, facing declining margins and increasing competition from e-commerce giants, require a strategy that enhances customer retention and diversifies revenue streams. MSPs, on the other hand, need an efficient way to access new customers and scale their recurring revenue business. This partnership provides the solution for both.

Clarifying the Role of OPDs in the Partnership

A critical distinction in this strategy is that OPDs are not expected to sell or directly implement managed IT services. Unlike MSPs, OPDs lack the necessary expertise, RMM software, and technical resources required to manage IT environments effectively. Instead, OPDs serve as a trusted gateway, introducing their established customer base to MSPs that provide IT solutions. In return, OPDs receive a negotiated commission on MSP services sold into their accounts.

While the MSP retains control over the delivery of IT services and benefits from the higher gross margins associated with a recurring revenue model, the OPD gains a different but equally valuable advantage: access to actionable business intelligence. By partnering with MSPs to install Data Capture Agents (DCAs) and, where feasible, Remote Monitoring and Management (RMM) software, OPDs can gain visibility into customer needs, procurement habits, and consumption patterns. This intelligence is the key to mitigating the competitive threat posed by online marketplaces such as Amazon and Walmart, allowing OPDs to proactively engage with customers and tailor their offerings to secure long-term loyalty.

Strengthening the OPD’s Competitive Position

The power of this partnership lies in its ability to modernize OPD operations without requiring them to become IT service providers. By enabling OPDs to gather and act upon real-time data, this strategy fortifies their customer relationships, enhances their ability to compete with e-commerce disruptors, and shifts their business model from reactive transactions to proactive engagement.

Furthermore, OPDs can capitalize on the enhanced trust and stickiness created by MSP services. When an MSP successfully integrates managed IT into an OPD’s customer base, that customer is significantly less likely to switch providers for office products, as doing so would disrupt their IT service agreements. This indirect retention effect is one of the most powerful aspects of the OPD-MSP collaboration.

A Sustainable and Credible Strategy

To ensure credibility with both OPDs and MSPs, it is imperative that this white paper does not suggest OPDs should attempt to become MSPs. Any such implication would undermine the strategy’s viability and alienate both parties. Instead, this framework is built upon specialization: OPDs remain focused on their core strengths in procurement and supply chain management, while MSPs provide the technical expertise required for IT services. The true innovation in this approach is the seamless integration of both capabilities, resulting in a stronger, more resilient business model for OPDs.

Final Thoughts: A Win-Win Collaboration

In an industry facing rapid change, OPDs cannot afford to remain static. However, they also cannot simply pivot to an entirely new business model that falls outside their area of expertise. The OPD-MSP partnership provides a realistic, strategic pathway for OPDs to adapt, ensuring long-term viability in an increasingly digital marketplace.

• MSPs gain access to warm, high-quality leads at a lower acquisition cost.
• OPDs receive commissions on IT services without the burden of technical execution.
• Both parties benefit from deeper customer relationships, increased retention, and greater operational efficiency.

By embracing this collaboration, OPDs can strengthen their competitive position, secure predictable revenue streams, and ensure they remain indispensable to their customers. This is not about turning OPDs into MSPs—it is about creating a future-proof business model that leverages the best of both worlds.

Related Reading:

Strategic Alliances: OPDs & MSPs Thrive Together: OPDs and MSPs can overcome growth challenges by partnering to integrate IT services, boost client value, and shift to a service-based model.

Challenges Reshaping Office Product Dealers: Office Products Dealers face rising challenges from e-commerce, declining paper demand, and outdated systems—making modernization key to survival.